Rate of tax on entry of goods in karnataka-Karnataka Tax on Entry of Goods Act - Professionals - Taxation - TIK Share
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Rate of tax on entry of goods in karnataka-Karnataka Tax on Entry of Goods Act


CA Pulkit Sharma

2014-01-08

KTEG Act is most ignored tax law. Consulted many people but no one seem to have an idea about it.

Updating the general rules of Act.

Entry Tax when applicable:

There shall be levied and collected a tax on 2 [entry of any goods specified in the FIRST SCHEDULE]2 into a local area for consumption, use or sale therein, at such rates not exceeding five percent of the value of the goods as may be specified 3 [retrospectively or prospectively by the State Government by notification and different dates]3 and different rates may be specified in respect of different goods or different classes of goods or different local areas.

From above wording we understand that Tax can not be more than 5% and is applicable if brought from one local area to another local area.

Local Area means an area under the Municipality, Panchayat etc.

Which Good are covered?

List of such goods is given in Schedule one of KTEG Act.

What is the rate of Tax?

Rate is different for different goods but the normal rate is 2%.

What is the rate of Interest?

Rate of Interest is 1.5% for each month.

CA Pulkit Sharma

2014-01-08


[FIRST SCHEDULE
(See Section 3 (1))


1. First Schedule with Serial Number 1 to 103 inserted by Act 3 of 1995 w.e.f.
1.5.1992
1. Air-conditioning plants, air coolers and airconditioners and parts thereof.
2. Arms of all kinds including guns, rifles, revolvers, pistols and ammunition for the same.
3. Batteries and parts thereof including dry cells and dry cell batteries.
4. Brass, bronze and copper articles including sheets circles, rods, rounds, squares, and flats made of brass, bronze and copper but excluding those specified elsewhere.
5. Bricks and tiles other than those specified elsewhere.
6. Bullion and specie and articles made of gold and silver other than those specified elsewhere.
7. Butter, ghee and chees.
8. Cassette tape recorders and players (audio and video) including audio and video cassettes.
9. Cement and water and weather proofing compounds.
10. Chemicals of all kinds.
11. Chinaware, porcelainware and stoneware (articles) other than those specified elsewhere.
12. Chicory powder.
13. Cigar and cigarette cases, holder and lighters, and tobacco pipes.
14. Cinematographic, photographic and other cameras, projectors, enlargers, lenses and parts and accessories thereof.
15. Clocks, time pieces and watches (all kinds) and parts thereof including watch straps and chains (made of base metals.)
16. Coir products including rubberised coir products

17. Confectionery, biscuits and cakes. 

18. Coppersulphate.
19. Cotton yarn waste and cotton waste.
20. Crockery and cutlery.
21. Deodrants, disinfectants, germicides other than those falling under any other entry.
22. Dictaphones and other similar apparatus for recording sound and parts and accessories thereof.
23. Diesel engines and parts thereof.
24. Dry fruits including almonds, walnuts and pista
25. Druggets and durries.
26. Dyes.
27. Edible oils including hydrogenated oil and cooking medium.
28. Electrical and electronic goods, appliances, instruments and apparatus and parts and accessories thereof but excluding those specified elsewhere.
29. Fiberglass sheets and article made of fiberglass.
30. Films (all kinds) including X-ray films.
31. Fire fighting equipments and devices.
32. Fire works and colour matches.
33. Foamed rubber, plastic foam or any other synthetic foam articles such as sheets cushions, pillows mattresses and the like.
34. Food and non-alcoholic drinks that is to say :-
(i) Ready to serve foods, processed foods, semi cooked or semi processed food stuffs, fruits (other than dry fruits including almonds, walnuts and pista) and dried vegetables products (whether cooked or not), fruits and vegetables products when sold in tins, cans, bottles or in any kind of sealed containers.
(ii) Instant mix, such as jamoon mix, idli mix, ice cream mix, jelly mix and the like ; sambar and rasam powders and pastes, curry powder and pastes, and the like ; soft drink concentrates (other than fruit and vegetable concentrates) whether in liquid or powder or crystal form.

(iii) Aerated water including ready to drink soft drinks whether or not flavoured or sweetened and whether or not containing vegetable or fruit juice or fruit pulp when sold in bottles, tins, cans or in any kind of sealed containers but excluding soft drinks concentrates.
35. Food preservatives, food colours and food flavours.
36. Footwear and polishes.
37. Furniture of all kinds, including treasure chest, safes and lockers and parts and accessories thereof.
38. Furs and skins and articles made therefrom including hides and skins.
39. Glass sheets and all articles made of glass.
40. Gramaphones of every description and accessories and parts thereof.
41. Gramaphone records and needles.
42. Hardware, that is to say :-
(i) fittings of doors, windows and furniture (made of base metal and alloy thereof).
(ii) bolts, nuts and rivets, screws of base metal or alloy thereof including bolt ends, screw studdings, self tapped screw, screw hooks, screw rings, wire nails, measuring tapes and scales.
(iii) Metallic barbed wire, metallic wire, metallic wire mesh and metallic wire nettings.
43. Industrial gas, such as oxygen, acetylene, nitrogen and the like.
44. Insecticides, pesticides, weedicides, fungicides and plant nutrients and plant regulators.
45. Ivory and sandal wood articles including sandal wood oil.
46. Jaggery.
47. Kitchen ware (all kinds) used for cooking as well as serving.
48. Laminated, impregnated or coated matting materials such as linoleum generally used for floor covering (other than floor tiles).
49. Leather goods other than footware and those specified elsewhere.
50. Lifts, elevators and escalators whether operated by electrically or hydraulic power.
51. Liquor including arrack and toddy.
52. Machinery (all kinds) and parts and accessories thereof but excluding agricultural machinery.

53. Man made or synthetic staple fibres, fibre-yarn, or filament yarn (all kinds)
54. Marble slabs and articles made therefrom.
55. Medicinal and Pharmaceutical preparations.
56. Mill yarn (all kinds) excluding cotton yarn and those specified elsewhere.
57. Mineral water sold in container.
58. Motor vehicles (all kinds) and parts and accessories thereof including chassis of Motor Vehicles.
59. Non-edible oils (other than petroleum products and those specified elsewhere)

1
[60. x x x]1

1. Omitted by Act 6 of 1995 w.e.f. 1.4.1995
61. Oil cake.
62. Opium, Ganja and Bhang.
63. Optical goods (all kinds) including spectacles, sunglasses, goggles, lenses and frames including attachment parts and accessories thereof.
64. Paints, colours, varnishes, pigments, polishes, indigo, enamel, bale oil, white oil, turpentine (all kinds), thinners, primers and paint brushes.
65. Paper (all kinds) including carbon paper, blotting paper, water proof paper, PVC coated paper, ferro paper, ammonia paper, stencil paper, but excluding photographic paper; pulp boards, art boards, duplex boards, triplex boards, cardboards, corrugated boards and the like ; cellophane.
66. Packing materials namely :-
(i) fibre board cases, paper boxes, folding cartons, paper bags, carrier bags and card board boxes, corrugated board boxes and the like.
(ii) tin plate containers (cans, tins and boxes) tin sheets, aluminium foil, aluminium tubes, collapsible tubes, aluminium or steel drums, barrels and crates and the like ;

(iii) plastic, poly-vinyl chloride and polyethylene films bottles, pots, jars, boxes, crates, cans, carboys, drums, bags and cushion materials and the like ;
(iv) wooden boxes, crates, casks and containers and the like;
(v) gunny bags, bardan (including batars), hessian cloth, and the like;
(vi) glass bottles, jars and carboys and the like ;
(vii) laminated packing materials such as bitumanised paper and hessian based paper and the like ;
67. Petroleum products, that is to say, petrol, diesel, crude oil, lubricating oil, transformer oil, brake or clutch fluid, bitumen (asphalt), tar and others, but excluding aviation fuel, liquid petroleum gas (LPG), kerosene and naptha for use in the manufacture of fertilizers.
68. Photographic paper and photo albums
69. Pipes, tubes and fittings of iron and steel other than those specified in section 14 of the Central Sales Tax Act, 1956), cement and asbestos.
70. Plastic sheets, granules and articles made from all kinds and all forms of plastic including articles made of polypropylene, polysterene and like materials
71. Playing cards of every description.
72. Precious stones namely diamonds, emeralds, rubies, real pearls and sapphires and articles in which such precious stones are set, semi-precious stones and articles in which such semi-precious stones are set..
73. Pressure cookers and parts and accessories thereof
74. Raw-wool, woolen yarn and woolen blended yarn
75. Readymade garments including caps, neck ties and bows
76. Refrigerators, including deep freezers, bottle coolers, water coolers, cold storage equipments and the like and parts thereof
77. Rolling shutters and collapsible gates whether operated manually, mechanically or electrically and their parts.
78. Roofing , light roofing and false roofing materials including cement and asbestos sheets, asphalt sheets, straw boards hard and soft boards, plywood, veneered boards and panels and laminated sheets.

79. Rubber, that is to say :- 

(i) Rubber plates, sheets and strips unhardened whether vulcanised or not and whether combined with any textile material or otherwise.
(ii) Piping and tubing of unhardened vulcanised rubber.
(iii) Transmission, conveyor or elevator belts or belting of vulcanised rubber whether combined with any textile material or otherwise.
(iv) Synthetic rubber including butadiene rubber and butyls rubber, synthetic rubber latex including prevulcanised synthetic rubber latex.
(v) Rubber articles, that is, articles made wholly of rubber (other than those specified elsewhere).
1
[80. Raw materials component parts and inputs which are used in the manufacture of an intermediate or finished product]1
1. Substituted by Act 5 of 2001 w.e.f. 1.4.2001
81. Rubber and other tyres, tubes and flaps other than those specified in Section 14 of the Central Sales Tax Act, 1956.
82. Sanitary fittings of every description excluding pipes and fittings of stoneware, cement, iron and steel.
83. Slotted angles and ready to assemble parts of steel racks.
84. Soaps, Soap flakes, soap powders, detergent powders and liquids and laundry brighteners.
85. Sound transmitting equipments including loudspeakers and Parts thereof excluding telephones and its parts.
86. Spirits and alcohol, that is to say,-
(i) denatured spirit :
(ii) rectified spirit :
(iii) ethyl-alcohol :
87. Stationery articles namely :-
(i) Account books, paper envelops, dairies, calenders, race cards, catalogues, greetings cards, invitation cards, humour post cards, picture post cards, cards for special occasion and stamps albums.

(ii) office desk materials.
88. Stones, that is to say:-
(i) Granite stones, slabs and chips
(ii) Cuddapah stones and slabs
(iii) Shahabad stones and slabs
89. Stoves and parts and accessories thereof.
90. Sugar other than confectionery and the like.
91. Suit cases, brief cases, attache cases and despatch cases including those made of leather but excluding steel trunks.
92. Silk yarn that is to say, twisted or thrown silk yarn, spun silk yarn and noil silk yarn.
93. Telephones of every description and parts thereof.
94. Textiles namely cotton, woolen or silk or artificial silk including rayon or nylon and other man-made or synthetic fabrics manufactured in mills or powerlooms and hosiery cloth in length, and including fabrics coated with or impregnated with P.V.C. or cellulose derivatives (whether or not manufactured in mills or powerlooms.)
95. Tiles (all kinds) used for floors and walls other than those specified elsewhere.
96. Tobacco products of all description including beedies, cigarettes, cigars, churuts, snuff, zarda-quimam etc.
97. Toilet articles (whether medicated or not) except toilet soaps but including razors and razor blades and cartidges.
98. Typewriters and parts and accessories thereof and typewriter ribbon.
99. Vacuum flasks and refills.
100. Weights and measures.
101. Wireless reception instruments and apparatus including televisions and components thereof ; amplifiers and synthesisers.
102. X-ray apparatus.
103. Goods other than those specified in any of entries in this schedule, but excluding those specified in the second schedule.]1

Reply

Mukesh Jain CA

2014-01-11

I think the schedule given by you is very old. I am attaching here with a pdf file kindly refer to the same. kindly refer to the same KTEG.pdf 

Also many people have a myth that entry tax is applicable only on inter state purchase how ever it is also applicable when goods are transferred from one local area to another within karnataka.

Reply

Enthusiasm to speak

2014-01-11

File - kteg.pdf is not uploaded it seems.

Reply

CA Pulkit Sharma

2014-01-11

Seems some problem. Site Admin to take care. I think will be solved at earliest.

Reply

A Yasasvi

2015-04-30

Are Generators/Gensets are included in the schedule 1 of the act?

Reply

Mukesh Jain CA

2015-05-08

Generator or Gensets are not included in KTEG Schedule.

Reply

A Yasasvi

2015-05-08

Thanks Mukesh for your advice.

 

I have one more question, if it is not included in the schedule, does that mean that there is not tax liability?

Reply

Antony Raj

2015-06-16

Sir,

How to calculate Entry Tax?, Is it 2% on Gross amount of the bill or on the cost of goods?

Recenty we purchased 3 Machines from Coimbatore, and they charged CED 12.5% on Cost of Machines and CST 2% on Cost of Machines+CED.

Now how do I pay the Entry tax?

Kindly clarify the same.

Thanks in Advance.

ANTONY RAJ

BANGALORE

Reply

Axay Shah

2016-01-25

103. Goods other than those specified in any of entries in this schedule, but excluding those specified in the second schedule.], this serial 103 of the kteg act is covering every goods other than specified in schedule 2. kindly clarify.

Reply

Axay Shah

2016-01-25

103. Goods other than those specified in any of entries in this schedule, but excluding those specified in the second schedule.],

Is this serial 103 of the kteg act is covering every goods other than specified in schedule 2.    kindly clarify.

Reply